The new charter has been introduced by the government to help borrowers that are concerned about the high interest rates, and those that are struggling to keep up with their mortgage payments amidst this cost-of-living crisis.
Here are some of the additional measures that have been introduced:
- If you are worried about mortgage repayments, you can contact your lender for help & guidance without any impact on your credit file.
- Customers who are up to date with payments can switch to a new mortgage deal at the end of their existing fixed rate deal without an affordability check.
- Tailored support is available for those facing difficulties, including options such as extending the term to reduce payments, switching to interest-only, or temporary payment deferral.
- From 26th June, borrowers cannot be forced to leave their homes without consent, except in exceptional circumstances, within a year of their first missed payment.
- From 10th July, customers approaching the end of a fixed rate deal can lock in a new deal up to six months in advance. They can also manage their new deal and request a better option with their lender until the new term starts.
- The government has made access to Support for Mortgage Interest easier. If you are on Universal Credit, you can now receive help with your mortgage interest payments after three months
It’s important to stay informed; please do not hesitate to reach out for further information, or you can find out more information on the government website:https://www.gov.uk/government/publications/mortgage-charter/mortgage-charter
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
Anyone worried about their mortgage repayments can call their lender for advice without this impacting on their credit score.
HM Treasury
Lenders who have signed up to the Mortgage Charter so far:
- Bank of Ireland UK
- Barclays
- Bath Building Society
- Buckinghamshire Building Society
- The Co-operative Bank, including Platform and Britannia
- Coventry Building Society
- Darlington Building Society
- Earl Shilton Building Society
- Ecology Building Society
- Family Building Society
- Furness Building Society
- Glasgow Credit Union
- Hinkley & Rugby Building Society
- HSBC, including First Direct
- Leeds Building Society
- Leek Building Society
- Lloyds, inc. Halifax & Scottish Widows
- Loughborough Building Society
- Melton Mowbray Building Society
- Nationwide Building Society
- Natwest, including RBS & Ulster Bank
- Newcastle Building Society
- Nottingham Building Society
- Principality Building Society
- Progressive Building Society
- Santander
- Scottish Building Society
- Skipton Building Society
- Suffolk Building Society
- Tipton & Coseley Building Society
- TSB
- The Vernon Building Society
- United Trust Bank Limited
- Virgin Money, including Clydesdale Bank and Yorkshire Bank
- West Bromwich Building Society
- Yorkshire Building Society
These lenders represent approximately over 85% of the mortgage market.